A planned maintenance shutdown at KIC Metaliks' pig iron facility is expected to begin in the first week of September and last around one-and-a-half months. The facility produces around 20,000-25,000 mt/month, potentially reducing regional availability during the outage.
The impact could be significant as spot pig iron availability is already relatively tight. Major Indian producers have also secured substantial export bookings, keeping part of their production committed to overseas markets and limiting supplies for domestic buyers.
The prolonged shutdown could remove around 30,000-37,500 mt of potential production during the expected outage period, although the actual supply impact may vary depending on inventory levels and the timing of the restart.
Firm domestic demand could further tighten the market as buyers compete for limited spot material. The combination of lower production, export commitments and steady demand may strengthen sellers' pricing power.
Pig iron prices are therefore expected to remain firm through September, with further upside possible if spot availability tightens following the shutdown.
Source: BigMint
